Swifty Industries changed from the double-declining-balance to the straight-line method in 2026 on all its equipment. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2023, had an original cost of $1,472,000, with a $86,400 salvage value and an 8-year estimated useful life. Income before depreciation expense was $272,800 in 2025 and $275,200 in 2026. (a) Your answer is partially correct. Prepare the journal entry to record depreciation expense in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Equipment eTextbook and Media Debit Credit SUPPORT
Swifty Industries changed from the double-declining-balance to the straight-line method in 2026 on all its equipment. There was no change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2023, had an original cost of $1,472,000, with a $86,400 salvage value and an 8-year estimated useful life. Income before depreciation expense was $272,800 in 2025 and $275,200 in 2026. (a) Your answer is partially correct. Prepare the journal entry to record depreciation expense in 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Equipment eTextbook and Media Debit Credit SUPPORT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Swifty Industries changed from the double-declining-balance to the straight-line method in 2026 on all its equipment. There was no
change in the assets' salvage values or useful lives. Plant assets, acquired on January 2, 2023, had an original cost of $1,472,000, with
a $86,400 salvage value and an 8-year estimated useful life. Income before depreciation expense was $272,800 in 2025 and $275,200
in 2026.
(a)
Your answer is partially correct.
Prepare the journal entry to record depreciation expense in 2026. (Credit account titles are automatically indented when the amount
is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List debit
entry before credit entry)
Account Titles and Explanation
Depreciation Expense
Accumulated Depreciation Equipment
eTextbook and Media
Debit
Credit
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